Indian Economy News

India CPI inflation preview: April CPI inflation likely to stay below 5%; core inflation may ease further

Analysts anticipate India's retail inflation will stabilize in April, with a slight increase in food and beverage prices and continued moderation in core inflation. The March figure stood at 4.85%, and economists expect April's inflation to hover around 4.80%, remaining above the Reserve Bank of India's 4% target but below 5%.

Market sentiment suggests that the RBI will likely maintain its policy rates during the upcoming June meeting, as Governor Mr. Shaktikanta Das expressed concerns over food price uncertainties. Brokerage firm Nirmal Bang forecasts CPI inflation at 4.91% in April, with food and beverage inflation expected to rise slightly. Co-founder and chief global strategist at Pace 360, Mr. Amit Goel, anticipates a retail inflation slowdown for April, prompting a potential shift to a dovish stance by the RBI in June, with rate cuts possibly following in August, enhancing market liquidity.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.